About accounting

sabbycat · #1 Jan 10, 2008, 07:44 PM

If total assets decreased by $47,000 during a period of time and owner's equity increased by $24,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is ________.

$23,000 increase

$47,000 decrease

$71,000 decrease

$71,000 increase

I was thinking 23,000 increase, but i have no clue

any help

pready · Jan 11, 2008, 09:10 AM

The Decrease in Total Liabilities is $71,000

$47,000 Decrease + 24,000 Increase = $71,000

Remember that: Assets = Liabilities + Owners' Equity.



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